Foxconn Courts Startups

In the hopes of working with innovative startups that could potentially generate future revenue like Apple, Foxconn launched an online platform called Kick2real to help global entrepreneurs turn their creative ideas into prototypes at no cost.

Reuters

The site, unveiled this month in Chinese and English, offers technology and manufacturing support for wearable devices, mobile accessories and software, among other categories.

Kick2real is still in the testing phase. But its website shows that it has already received 24 projects and 12 registered members. When the platform finishes its internal testing, an entrepreneur can register as a member and submit his project online. Kick2real’s team of manufacturing specialists will examine the project ideas and allow other registered members to give opinions. The Foxconn-backed platform will then select the projects and help startups manufacture their product.

Apart from manufacturing services, Kick2real can also help startups raise money and market their products, according to Foxconn.

Foxconn can either invest in the startups or help introduce investors, Foxconn officials said.

“[Foxconn] Chairman [Terry] Gou is serious about the startup initiatives and all business units are ordered to use all means to ensure its success,” said one Foxconn official who declined to be named. ” We are opening our manufacturing platform to all entrepreneurs, not just global brands.”

As part of the company’s effort to attract entrepreneurs, Foxconn’s Hong Kong-listed handset manufacturing unit FIH Mobile has also set up a division called InnoConn to make new devices with the goal to support hardware innovation in the early stages.

FIH Mobile, which reported losses for several years, has turned a former production site for Nokia in Beijing into an office for InnoConn, said Foxconn officials.

With 4,000 square meters of space, InnoConn aims to help startups from product concept to mass production of accessories and handheld devices. It is also offering working space for entrepreneurs.

Beijing-based smartwatch maker Tomoon has been working with InnoConn, Foxconn officials said. The division is also working with some global brands on projects including affordable smart devices that help the global aging population and handicapped people, said the Foxconn official.

Foxconn, known officially as Hon Hai Precision Industry, is facing rising challenges to grow its forty-year-old business. Foxconn’s earnings growth in the last decade has been underpinned by strong orders from Apple. But Foxconn’s largest client Apple, which makes up almost half of its revenue, has also seen a slowdown in earnings amid stiff competition.